Meeting - December 1, 1998

DISPUTE RESOLUTION GROUP COMPANY'S FORUM MINUTES OF MEETING, DECEMBER 1, 1998

Attendees:
Jan Mackintosh, Registrar, DRG, FSCO
Brad Barber, Allstate Insurance Company
Mavis Haws, Dominion of Canada Insurance Company
Mary Wright, Royal and Sun Alliance
Dragana Sivac, Arbitration Unit, FSCO
Paula Buchok, Mediation Unit, FSCO
Terry Brady, CICMA
Debbie Diamanti, Zurich Canada
Mike DeLahaye, Wawanesa Mutual Insurance Company
Phil Thorpe, Co-operators General Insurance Company
Anne Baumgartner, General Accident Group (Canada) Ltd.
Gail Moser, Economical Mutual Insurance
Donna Brown, Arbitration Unit, FSCO
Brian Jarvis, Halifax Insurance Company
Deirdre Martin, Insurance Council of Canada

1. Year 2000
   
   Jan Mackintosh shared with us that the work on the Year 2000 preparations at the Financial Services Commission is well underway and has been for quite some time. She indicated that IBM has commenced their testing and confirms that the Commission is well on its way to Year 2000 compliancy. Obviously, this is a very important matter for DRG as they are very computer dependent for all of the statistics that they prepare. Jan encouraged the attendees to take their own steps towards year 2000 readiness.
   
   
2. Statistics
   
   The statistics up to and including November 27, 1998 were shared with the group. The number of insureds and insurers who attend mediation represented is declining under Bill 59. There was an overall decline in the number of mediations which has levelled off and this is having a mirror effect on the number of arbitrations and appeals.
   
   
3. Mediators
   
   It was confirmed that mediators are now receiving and are expected to mediate nine files per week. File assignment is based on the number of new files entering the system and the number of staff available to do mediations. Efficiencies are being achieved from the emphasis on clearer issue definition at the application stage.
   
   
4. Arbitration Hearing Backlog
   
   The Commission is in the process of hiring additional arbitrators to reduce the existing backlog of arbitration hearings scheduled. Early hearing dates were offered to applicants and insurers on all ongoing arbitrations and the offer was made to trade earlier hearing dates with those that were already set for the given cases. This offer expired on November 30 and the earlier hearing dates will now be offered at the pre-hearing stage for any cases where hearing dates are being set. At this point, hearing dates are now available in mid-March and early April. The goal of the Commission will be to schedule the arbitration hearing within four to six months of the pre-hearing.
   
   The Financial Services Commission has made a commitment to keep stats on adjournments and the reason for these adjournments as this was an issue raised by the group. However, an adjustment to the MARS computer program will be required before these stats can be maintained.
   
   The issue of problems related to productions was raised again. Again, the Financial Services Commission indicates that we must be specific in our pre-hearing production requests and when possible have the arbitrator make an order on disputed productions. If we then do not receive the productions, we will be better able to act on them if we have followed these steps. An option is also to notify the Financial Services Commission if documents are not produced and they will write the delinquent party and ask them to provide the documents.
   
   Whenever we ask for productions we should be specific with a commitment and time from the solicitor so that if this commitment is not met, the Financial Services Commission will be better able to act on the commitment.
   
   
5. Adams' Report
   
   The Financial Services Commission is in the process of responding to and implementing the major recommendations made in the Adams Report. They are looking to develop performance standards which will set out time frames for arbitration dates, arbitration decisions, appeals, etc.
   
   
6. Duplicate Arbitration Applications
   
   An issue was raised by one of the members with regards to multiple applications for arbitrations on issues heard at the mediation. These situations arise when the first arbitration is already underway for issues which have been mediated and the client then decides to file another application for arbitration on issues heard at the same mediation. The Financial Services Commission indicated that if they are aware that the applications are from the same client, they will consider a request to consolidate them.
   
   However, if one slips through, please advise the Commission immediately and they will consider a request to consolidate the arbitrations. The fastest way to achieve this is to call the caseworker or Donna Brown. If you are unable to reach them by phone, it is prudent to write a letter advising them of the particular facts situations.
   
   
7. Face-to-Face Versus Telephone
   
   The issue was raised with regards to whether or not face-to-face mediations are an option. Normally, the mediator will determine whether or not the case warrants a face-to-face mediation. If the insurer wishes to have a face-to-face mediation, they are more than welcome to phone the mediator and advise them of their reasons as to why they feel a face-to-face mediation is required in a given case. The mediation unit indicated that they regularly go to the Hamilton and St. Catharines (Golden Horseshoe Area) but other than that the majority of the face-to-face mediations are held in Toronto. The mediator has the final say as to how the mediation will be conducted.
   
   
8. Next Meeting
   
   The group will meet again on March 2, 1999, at 10:00 a.m. and June 22, 1999 at 10:00 a.m.